August 16, 2004

 

 

India Eyes Larger Exports For Milk Products
 

India, the world's largest milk producer, is gearing up to capitalise on the rising global prices of milk products while overcoming non-tariff trade barriers in developed nations with quality certification.

 

The revival of the summer monsoon, which accounts for 80 percent of the rainfall in the country, has further improved prospects for the Indian dairy sector.

 

"India's dairy sector has been recording four to five percent annual growth as against the global average of around one percent. The monsoon this year should help India record another good year in dairy sector," said R. S. Sodhi, general manager (marketing) of Gujarat Cooperative Milk Marketing Federation (GCMMF).

 

The largest Indian exporter in the cooperative sector, GCMMF under the Amul brand is eyeing good opportunity this year.

 

"With the World Trade Organisation rules being implemented by developed countries, there has been some reduction in subsidies leading to a rise in global prices. The export market is beginning to look more lucrative. In the coming months, we would be able to export more," Sodhi told IANS.

 

"This year the global price of milk powder is almost double that of last year having risen from $1,400-$1,500 a ton of skim milk power to $2,100 a ton, which is an extra Rs25 a kg. The domestic demand was more last year, so we turned down some export orders. But this year the production has grown," said Sodhi.

 

From around Rs600 million of exports last year, GCMMF is expecting "no less than Rs1 billion worth of exports in 2004-05".

 

In the export market, India's dairy products are sold mainly in South Asia (Bangladesh, Sri Lanka) and the Middle East, while some quantities are also sold in the US and other developed countries.

 

Due to high tariff barrier in Europe and the US, coupled with stringent sanitary and phyto-sanitary measures, including animal health and residues of contaminants, India has not been able to fully capitalise on her export competitiveness, said Animesh Banerjee, president of the Indian Dairy Association.

 

"To overcome the non-tariff trade barriers, India has developed its own certification standard. It has also set in the mechanism for surmounting the entry level barriers under the Export Inspection Council," said Banerjee.

 

The emphasis on milk quality and shift towards mechanisation and processing has seen a steady increase in Indian exports. Figures have risen from 2,378.24 tons valued at Rs133.9 million in 1997-98 to 24,774.13 tons valued at Rs1.82 billion.